Materiality Analysis

From food retail via DIY stores through to tourism - the REWE Group is broadly positioned with its business and activity areas. The potentially material sustainability aspects that can affect the company are equally diverse. In addition to instruments such as Product-Related Risk Analyses, the materiality analysis is a method the REWE Group uses to identify material issues and set priorities in the development of measures. In particular, the assessment of internal and external stakeholders and the impact of the company's activities on people, animals and the environment play an important role.

In the reporting year, the Sustainability department reviewed the material topics of the REWE Group and continued to confirm their validity. In order to adapt to changing circumstances, the company had last updated its materiality analysis in 2020 - based on the results of 2018. The Corporate Responsibility department checked the original sustainability topics for actuality, relevance and missing focal points. They were then mirrored in an online survey with consumers, employees and other stakeholders. 6,150 participants in Germany and Austria¹ evaluated the total of 19 topics according to their relevance. The participants classified the following topics as particularly relevant for the REWE Group:

• Animal Welfare
• More Eco-Friendly Packaging
• Climate Protection
• Fair Working Conditions in the Own Companies
• Ecological Aspects in the Supply Chain

In addition to prioritising the 19 topics, respondents had the opportunity to express their specific expectations for their “top topic”. Central expectations for the highly relevant topic of animal welfare were greater choice of animal products with very good husbandry conditions and delisting of those with poor animal husbandry.

The majority of respondents saw the topic of climate protection as a cross-cutting issue. They expect the REWE Group to make climate protection a basis for all decisions.

For more eco-friendly packaging, a majority of respondents named the avoidance of plastic, the reduction of packaging quantities, the expansion of reusable solutions and the improvements of packaging from an ecological point of view as tasks for the REWE Group.

In addition, the participants were asked to assess the performance of the REWE Group in their “top topic”. Results:

• Overall, at least half of the respondents rated the REWE Group's performance with regard to each of the 19 topics as “satisfactory” (school grade 3/C) or better.
• The respondents expressed the highest level of satisfaction in the area of training and professional development: 77 per cent gave the school grade 3 or better here.
• Second and third place in the performance evaluation were taken by the expansion of the range of sustainable products and occupational health and safety.
• In contrast, the REWE Group's performance with regard to the topics of more sustainable logistics, digitalisation and sustainability as well as animal welfare was rated least positively.

Finally, the results of the materiality analysis were presented to top management in various committees and working groups. In addition to other information they are incorporated in the annual review of the sustainability strategy (for further information see section Sustainability Strategy).

Relevance from the Perspective of Internal and External Stakeholders

¹Number of participants in the survey of consumers and employees according to groups: 3,848 Germany (external), 655 Germany (internal), 505 Austria (external), 1,144 Austria (internal). The groups were weighted for the calculation of the overall result.

The key topics with content-related examples are presented in the following: